The naughty vendor checklist
provided some good debate, particularly around how much buyers themselves are to blame for the poor behaviour of their suppliers.
Not every buyer will seek to abuse the relationship with vendors to maximise performance, but there are some whose business practices could be described as “flexible”.
The following is a list of 10 real examples (the belief buyers or vendors don’t engage in this type of behaviour is naïve) of poor practice by purchasers.
- Delay the payment of invoice in breach of contractual obligations
- Exaggerate demand volumes to engineer lower unit prices
- Obfuscation of the financial health of the buying company
- Issue invitations to tender when the vendor has already been selected
- Release other bidders’ prices, including commercial models, to the competition
- Sharing vendors’ innovation with third parties, damaging their competitive advantage
- Deliberate infringement of intellectual property rights
- Awarding contracts on the basis of hospitality received and having gifts sent to a home address
- Dividing a procurement into lots to accommodate the buyer’s expenditure authorisation limit
- Insisting on site visits to exotic locations when there is no intention to award a contract
This is not an exhaustive list. What do you think is missing?
☛ Stephen Ashcroft is a purchasing and proposals coach at Brian Farrington. You can comment or connect with him on LinkedIn and follow him on Twitter